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Friday, June 24, 2011

Many residents of Minot, North Dakota believed they were safe from flooding due to a revised flood map and either canceled their flood insurance or failed to purchase a policy. Today, only one in ten residents have flood insurance.

Tuesday, June 21, 2011

Washington State Insurance Commissioner Mike Kreidler has fined insurance companies, agents and brokers more than $750,000 this year. Violations included charging unapproved rates and submitting false documents.
“These fines are the `teeth’ that help us protect insurance consumers,” said Kreidler. “It’s our job to see that the insurance industry’s playing by the rules.”

From January through mid-June, the insurance commissioner’s office has imposed $787,815 in fines. The largest, by far, was a $534,000 fine issued in January. More recent fines are listed below.

The money does not go to the agency. It is deposited in the state’s general fund to pay for other state services.

Any Washingtonian with a complaint against an insurer, agent or broker can contact the office at 1-800-562-6900 or file a complaint online at http://www.insurance.wa.gov/.

Tuesday, June 14, 2011

Cash B. Knott, 45, has been charged in Pierce County Superior Court with three counts of forgery, one count of insurance fraud, and one count of attempted 2nd degree theft.

On Nov. 6th, less than a month after getting coverage from Progressive Direct Insurance Co. for his 1992 Ford Ranger pickup, Knott filed a $5,674 insurance claim with Progressive. He said someone had scratched the paint, stolen his chrome wheels and tires, and stolen his navigation and entertainment system, 1,000 watt amplifier and other electronic components.

He provided Progressive with a Sept. 2 stereo shop invoice for $4,547.84 worth of stereo equipment, a copy of his check, and a bank statement showing the withdrawal from his checking account.

The problem: When contacted by an insurance adjuster, the stereo shop said it had no record of such a purchase. All they could find was that Knott had bought an amplifier -- for $109 -- on Sept. 2.

Insurance Commissioner Mike Kreidler's Special Investigations Unit obtained a search warrant for Knott's bank records. The bank found no checks written to the stereo shop, and none whatsoever for $4,547.84.

The upshot: The investigators believe that Knott altered the invoice, forged a check, and created a phony bank statement.

nearly 40 percent of respondents were driving less or taking public transportation more

nearly 20 percent traded in a vehicle for a lower-priced model or got rid of a second vehicle entirely

and almost 20 percent of drivers reduced or canceled their car insurance to save money -- something we do not recommend. You'll almost certainly pay more to get coverage later, and if you continue to drive without coverage, you expose yourself to potentially devastating financial liability.

Here are some of the changes that can affect how much you pay for insurance:

You moved: A change in zip code may affect your premium, depending on crime statistics in the area.

You changed cars: A lower-value car, not surprisingly, is usually cheaper to insure. If you're car's paid off and not worth much, you might consider saving money by raising your deductible or canceling your collision coverage. But keep your liability coverage.

A new job, or no job: These can affect whether you commute, and how far.

Driving less: Almost 40 percent of consumers said they're driving less. Many are walking or taking public transportation more often. If this sounds like you, you should talk to your insurer and see if you qualify for a low-mileage discount.

Bad credit score: The weak economy, layoffs and the collapse of the housing market have left many people with battered credit. Most states, including Washington, allow insurers to use your credit information to decide how much to charge you. (Here in Washington, we have successfully fought to limit this practice, but have not yet been able to convince lawmakers to ban it entirely.)

Wednesday, June 8, 2011

Our hearts go out to our colleagues in Louisiana, where yesterday two Louisiana Department of Insurance fraud investigators were shot and killed while trying to gather information from an insurance agent.

Monday, June 6, 2011

A Seattle man has been charged with insurance fraud and second-degree theft for allegedly filing multiple auto insurance claims for a single accident.

Thanh Thai "Derrick" Dang, 31, was charged Wednesday in King County Superior Court. Both charges are class C felonies, carrying a maximum penalty of 5 years in prison and a $10,000 fine.

An investigation by the state insurance commmissioner's Special Investigations Unit found that in May 2010, Dang contacted insurer Ameriprise to say that his Toyota RAV4 had been hit by a hit-and-run driver while parked outside a home in Seattle. Ameriprise issued a check for $3,887.

Eight days after the accident, Dang obtained coverage over the internet from Allstate. Almost immediately, he filed a claim with Allstate for damage to the RAV4, saying that the car had been rear-ended while he was driving on Interstate 5. He also claimed that he'd been injured. Allstate issued a check for $3,502 for repairs to the vehicle.

A subsequent investigation by Allstate's anti-fraud unit showed that the RAV4 damage was identical in both claims.

A hearing in Dang's case is scheduled for June 13th.

Update (9/20/2011): King County Superior Court Judge Susan Craighead ordered Dang to pay restitution to both Allstate and Ameriprise, plus $600 to the court. He was also sentenced to 200 hours of community service.

A new study shows just how damaging speeding tickets or other moving violation citations can be to your insurance rates.

Insurance.com did an analysis of more than 32,000 insurance policies sold last year, and concluded that a single violation on a driver's record drove up rates by an average of 18 percent. Drivers with two violations paid an average of 34 percent more, and those with three paid 53 percent more.

The International Commission on Holocaust-Era Claims, which helped collect more than $1 million for Washington state claimants, stopped accepting claims in March of 2007. But you may still be able to file a claim. The following companies have agreed to accept post-deadline Holocaust-era claims directly from individuals:

For help or questions -- if you're a Washington state resident -- contact our office at 1-800-562-6900. (If you live in another state, here's a list of contact information for other state insurance departments.)

Washington premiums for earthquake insurance last year ($118 million). Claims were almost nonexistent.

Medical malpractice insurance premiums totaled ($157 million).

Who the top 40 companies are, for each line of insurance business.

Accident and health coverage is a $14 billion business in Washington.

Health insurers pay out an average of nearly 86 cents for every dollar in premiums they collect.

Mortgage guaranty insurance, due to the housing market turmoil, has seen a big surge in payouts over the past few years, and continues to lose money. Last year, these policies paid out nearly $1.76 for every dollar in premiums they collected.

And if you want to compare data year-to-year, we've posted all our annual reports online since 1998. (Here's an interesting one: Take a look at mortgage insurance claims in 2005, for example, compared to the last couple of years.)